Bedford board decides employee insurance rates

Tuesday

The township board settled the details at its Nov. 15 meeting, after reviewing the rates for 2017 and how that impacts individual staff members.

Bedford Township’s employees will pay a share of their medical insurance plans, but the exact amount will vary depending on how much their salaries are.

The township board made that decision at its Nov. 15 meeting, after reviewing the rates for 2017 and how that impacts individual staff members. Under federal rules for smaller employers, the cost for each staff member’s policy can be very different, Treasurer Paul Francis explained.

While the average employee contribution is 14 percent pay for health care premiums and a health care reimbursement account that is in the package, it actually will be in a tiered formula.

For the most part, the staff contribution will be 11 percent, deputies and union rate will be 13 percent, and elected and management contribution will be 17 percent. Clerk Trudy Hershberger said there is one employee who has hit a 20 percent, which is where the township will cap off the employee contribution amount; in the next year or two, given current projections, she expects more employees will hit a 20 percent bracket.

The reimbursement accounts, which are a shared expense by the township and employees, also have been lowered. Those spend down accounts are meant to help employees with out-of-pocket expenses. Starting Jan. 1, the amount available under a single person plan will be reduced from a total $6,350 to $2,350; for two or more people on the plan, it will be reduced from $12,700 to $4,700.

When the township went to its current insurance setup a few years ago, trustee Larry O’Dell said, it was actually a cost savings. The problem is that around three years ago, the township noticed significantly higher expenses.

“It’s a moving target,” Mr. Francis said about projecting the actual costs.

In the long run, both Mr. Francis and Ms. Hersberger said they expect the township will settle into an 80/20 cost sharing plan with all staff.

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